Whether you like it or not, a large portion of the top 100 projects are fully centralized, VC governed platforms that don't actually differ much from the traditional business structure.
VCs have found a new industry to milk, and so far they've been quite successful. And that's fine, what's not fine though, is the fact that they claim to be decentralized, while in reality being far from it.
Perhaps this is a bold statement to make but when you scroll down through Coingecko, it becomes obvious what's the current state of affairs.
Decentralization became marginalized to a point where its no longer required or measured as a factor to consider prior to investing. Unfortunately, this is a fact, the market speaks louder than words.
But why is that?
To begin with, centrally governed projects tend to operate faster and execute tasks much more efficiently. In such a scenario, the rules of the game can be changed instantly, without reaching any consensus or approval by the community. There are some benefits to it, faster response in times of uncertainty, the ability to adapt quickly to upcoming challenges, and a much higher experimental potential.
The trade-offs are obvious.
The fact that someone can change the rules without you being able to do anything, put your assets at risk of being devalued by a single bad decision. It doesn't even have to be malicious, it can be a poor prediction or bad calculation, but it doesn't matter, you lost without a fight.
And that's fine in case you're aware of how the governance work, who holds the strains, and who dictates the tempo, but otherwise it's a fraud.
DAOs
On the other hand, DAOs require the majority of the votes from the community and stakeholders to reach a consensus in order to approve the changes. Obviously, decentralized decision-making is a lot slower and less agile to adapt to the market environment.
However, such an approach not only increases the security of the ledge, but also incentivizes everyone to analyze the proposal and polish the game theory behind it, in an attempt of finding the best solution possible. It demands personal due diligence and research because the changes will affect your future rewards, influencing you to act responsible.
My point is that Hive and similar fully functional DAOs will become ultra rare GEMS with a potential to usurp enormous amount of value from the market. I guess we just have to wait a bit more.
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The decentralized world is no doubt far more centralized than we imagined.
This is why a place like hive is very much different and will be an outstanding success with time.
We sure can wait that long before things blow up.
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Wouldnt that make it centralized then?
I think it should be the decentralized world is far smaller than we imagined.
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This will be a better demonstration of what's going on in the crypto world rn.
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Sad but true. We need to see more decentralization but what is promoted as such, is not.
Hive can change that.
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I agree with that. Hive can change that in multiple ways possible, from the social aspect to the financial sector
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The tentacles of Hive are really overlooked. We have a strong foundation in many different areas. I think that is why it is overlooked because progress is often slow. We are going in so many directions with so few people that it is only inching along.
However we are consistent with it so we keep moving ahead. That is the difference over the long haul.
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A great thought process.
Decentralization is a process. We are in transition. The benefit to centralization is control and speed. It simply is a lot faster. There are also a lot more resources on that end of things.
So it is no surprise that VC are funding the top projects. It is simply a sign the transition has not taken place.
There are also few options for non-VC funding. How many DAOs like the DHF exist? We are funding SpkNetwork so that is a bonus. But not much more is taking place across the industry.
It will come in time but for now, to start a different way, decentralization when it comes to this aspect is on the back burner.
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Every project is highly dependent on liquidity provided by the VCs and HFs. That's a huge problem because if the team and financiers disagree on what's the next step, the project might get drained in a matter of days. It wouldn't be the first time.
Liquidity is a huge problem for new projects.
We've been brainstorming on building a project on Hive, but it seems without liquidity our effort would turn worthless.
Seeing how it played out with pegaxy and similar projects the concerns only grow bigger.
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The other problem with VC money is that, at some point, they want to get paid. Here is where the users and VCs end up at odds.
And we all know how that ends.
Yes liquidity is vital and having the proper resources to start any project is vital.
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This is why I'm glad hive is still off the radar.
it gives us time to build. when people realize the importance of a decentralized network we will be ready.
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While we were trying to figure out how to combat and mitigate the attack vectors, both in technical and economy-wise terms, most projects focused on attracting the capital.
Some of them made it, while the rest went down being rugged...
Vicious cycles.
Time to make a difference.
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